This paper reconsiders the trade effects of the euro, providing a decomposition into its effects on the extensive margin and intensive margin. Furthermore, it relates the more disaggregated estimates for 93 two-digit HS product groups to the elasticity of substitution, thereby testing a key...

This paper analyzes the effects of international transfers to finance infrastructure on net migration flows among countries within the EU. A new economic geography model is employed with common pool financed infrastructure investments to derive a set of empirically testable hypotheses about the...

The paper proposes a distinction between the two dimensions of convergence-<i>within</i> and <i>between</i> countries-when analyzing the impact of cross-border outsourcing on real wage rates in the EU-15 and the CEEC. In the CEEC, international outsourcing has not affected the adjustment of average real wage...

The overwhelming importance of multinational activities as well as the coexistence of exporters and multinationals within the developed countries demand for theoretical models which provide a convincing explanation of simultaneous two-way trade and horizontal multinational activities. We present...

This paper compares four different estimators with respect to their suitability for cross-section gravity model estimation. In many circumstances, a Hausman-Taylor approach can be recommended. This framework may provide consistent parameter estimates, when OLS or the traditional random-effects...

In an earlier paper, we showed that bilateral exchange rates are important determinants of multinational activity of both the US and Japan and that increases in the bilateral and third-country exchange rates exert opposing effects on bilateral multinational activity. Furthermore, the signs of...